CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Beginner

Inside Pepperstone: Pro vs Retail?

When you apply for an account with Pepperstone you’ll need to make a decision whether you qualify as a professional or retail trader. Now, depending on which country you live and which Pepperstone licensed office you trade with, you will need to satisfy certain criteria to become a Pro or Retail trader. However, there are some key differences that you need to know as they will shape your ongoing trading experience and will influence your strategy.

Here’s a video explaining the difference between the two.

Arguably the main difference between these two account types is the level of leverage one has access to. Retail accounts are capped at much lower leverage levels and never exceed a maximum leverage rate of 30:1. Depending on the instrument, Pro accounts on the other hand can access leverage of up to 500:1. Let’s dive a little deeper so you can ascertain what might suit your needs better.

Retail Trader

While retail accounts do have lower leverage, traders receive increased client protections. Notably negative balance protection means you never lose more than is in your account – this can really help you sleep at night while you’re learning to master correct position sizing and potential gapping risk.

There are also increased protections within the account dynamics - whereby an automatic stop out on positions occurs when the account equity falls below 50% of the margin.

As a non-wholesale investor, this can have greater protections should you take a dispute to the ombudsman.

Pro Trader

To apply for a pro account you will need to take an eligibility criteria test, based on knowledge, proved trading experience and wealth, depending on the entity you are trading with. It does however offer the following benefits:

  • Greater rebates, reducing your trading costs
  • A compelling and popular refer-a-friend program
  • The smoothest payment solutions, such as cash in transit, and
  • A dedicated account manager to take your trading experience to the next level

Please note that the eligibility criteria to be classified as a Pro Trader in certain jurisdictions may defer to what’s mentioned above. Please contact your Account Manager or our support team for more information about Pro Trader eligibility criteria.

Learn more about trading CFDS

Here at Pepperstone, our customers love the product range along with the low cost to trade and the fact so many markets are open around the clock. Interested? Watch the more videos to learn or speak to our team about whether CFDs are right for you.